Dealership markups have always existed, but they’ve flourished recently thanks to the chip crisis and coronavirus pandemic.

As a result, it hasn’t been uncommon to see new vehicles with six-figure market adjustments. Automakers are well aware of the issue and the anger it creates.

The latest company to address this is General Motors as the Corvette Action Center has reportedly obtained a message GM North America President Steve Carlisle sent to dealers. It reads, “We are all very excited about recent GM news and product launches including the Chevrolet Corvette Z06, Chevrolet Silverado EV, GMC Hummer EVs, GMC Sierra EV, and Cadillac Lyriq” but “it has come to our attention that some dealerships have attempted to demand money above and beyond the reservation amounts set in GM’s program rules and/or have requested customers to pay sums far in excess of MSRP in order to purchase or lease a vehicle.”

Also Read: Chevy Corvette Markups Are Still Here, Rise To Almost $100,000!

Carlisle goes on to say this “puts our collective interests at risk and generates negative press that reflect poorly on GM’s brands and your dealerships.” That’s putting it mildly as we’ve covered numerous markups over the years and the countless number of forums that exist today can spring into action and hammer offending dealerships with one star reviews.

Since name shaming might not be enough to dissuade some dealerships, Carlisle reportedly reminded them that “GM dealers are obligated to ethically and lawfully sell GM Products, as stated in Article 5 of the Dealer Sales and Service Agreement.” He allegedly added, “Providing customers misinformation about additional sums being necessary for a customer to keep a reservation, is just one example of a tactic that reflects poorly on all of us.”

The purported message goes onto threaten that “GM will be forced to take action if it learns of any unethical sales practices or brokering activities that undermine the integrity that customers expect from the Chevrolet, Buick, GMC, and Cadillac brands.” This could mean offending dealers see their allocation of highly anticipated vehicles cut or are subjected to a “recourse prescribed by the Dealer Sales and Service Agreement.”

Assuming the letter is legitimate, it’s a positive development and one that will likely improve the company’s relationship with customers. Of course, actions speak louder than words and we likely won’t know how effective the threats are until these upcoming models arrive in showrooms.

H/T to Corvette Blogger